FGV Annual Report 2020

234 FGV HOLDINGS BERHAD Annual Integrated Report 2020 Statement On Risk Management And Internal Control GOVERNANCE & RISK MANAGEMENT KEY INITIATIVES Embedding sound governance and risk management framework in our business operations and investment decision making aligned with Group’s strategic objectives with the implementation of the following key initiatives THE ABOVE INITIATIVES HAVE BENEFITED AND STRENGTHENED VARIOUS AREAS, FUNCTIONS, AND PROCESSES ACROSS THE GROUP Implemented ABMS Framework and received ABMS Certification ISO 37001:2016. Performed CRM assessment across the Group on corruption, abuse of power and fraud risks with mitigation plans. Adequate Procedures T-R-U-S-T guidelines adhered to and in place to meet Corporate Liability requirements. Structured ongoing programs and action plans to entrench integrity culture and principles of good corporate governance for the next three years and beyond. Comprehensive whistle blowing policy, robust and trustworthy whistleblowing mechanism in existence and multiple reporting channels for safe reporting. All investment proposals are properly risk assessed through a uniform risk template and independently endorsed by Risk Management before Board deliberation. Quarterly risk registers are updated in ERMS by all businesses and corporate centres. More than 800 risks identified over 50 entities, with mitigations and action plans closely monitored. PROCUREMENT Tightened procurement policies & processes, clear Limits Of Authority with Board & Management tender committees. sustainability Enhanced Group Sustainability Policy, improved labour processes and focused on human rights constituents. Governance policies & practices Such as Code of Business Conduct, Gift/ Entertainment, Sponsorships & Donations, Conflict of interest, compulsory Assets/Personal Interest declarations and Group-wide online Integrity Pledge by all employees. Malaysia code of corporate governance Meeting and exceeding MCCG 2017 Principles and Practices. Investments appraisals Transparent and robust decision-making process imbued to ensure past lapses will not reoccur. Embedding a Governance and Risk Management Culture Key Initiatives 2020 FGV has adopted a holistic approach to risk management to ensure decisions made at Board and Senior Management levels are cascaded down for action across the organisational hierarchy. The Group considers this as the key to embedding a dynamic risk management culture in the Group. Continuous integration between strategies, governance and risk management is carried out to ensure a sound approach is embedded into business decision making and aligned with the Group’s strategic objectives and aspirations. ANTI-BRIBERY MANAGEMENT SYSTEM ADEQUATE PROCEDURES PER SECTION 17A OF THE MACC ACT FGV ANTI- CORRUPTION PLAN WHISTLEBLOWING FRAMEWORK PROJECT RISK ASSESSMENT ENTERPRISE RISK MANAGEMENT SYSTEM